One hotel chain in Japan has decided the only way to deal with a severe labor shortage is to double salaries to unprecedented levels.
Mystays Hotel Management, owned by Fortress Investment Group’s fund and the island nation’s fourth-largest operator, is offering monthly salaries of ¥500,000 ($3,210) for new hires into its fast-track program aimed at training managers for its 151 properties across Japan.
After letting go of staff during the pandemic, many hotels are now struggling to add workers as a resurgence of visitors overwhelms the hospitality industry. Rising prices and corresponding wage growth also make it harder for employers to attract workers without offering more attractive salaries. More than 60% of hotel operators say that their workforce remains stuck below pre-pandemic levels, according to Teikoku Databank.